AAR CORP (AIR) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AIR - US0003611052 - Common Stock
82.7 USD
-1.09 (-1.3%)
82.7 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to AIR. AIR was compared to 72 industry peers in the Aerospace & Defense industry. AIR has an average financial health and profitability rating. AIR has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
AIR had positive earnings in the past year.
AIR had a positive operating cash flow in the past year.
Each year in the past 5 years AIR has been profitable.
Each year in the past 5 years AIR had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.99%, AIR perfoms like the industry average, outperforming 49.30% of the companies in the same industry.
Looking at the Return On Equity, with a value of 2.31%, AIR is in line with its industry, outperforming 50.70% of the companies in the same industry.
AIR has a better Return On Invested Capital (8.79%) than 76.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AIR is in line with the industry average of 8.58%.
The 3 year average ROIC (7.36%) for AIR is below the current ROIC(8.79%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 2.31% | ||
| ROIC | 8.79% |
ROA(3y)2.32%
ROA(5y)2.84%
ROE(3y)4.33%
ROE(5y)4.83%
ROIC(3y)7.36%
ROIC(5y)6.95%
1.3 Margins
AIR's Profit Margin of 1.01% is in line compared to the rest of the industry. AIR outperforms 47.89% of its industry peers.
AIR's Profit Margin has improved in the last couple of years.
AIR has a Operating Margin (9.31%) which is in line with its industry peers.
AIR's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 19.04%, AIR is not doing good in the industry: 66.20% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of AIR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.31% | ||
| PM (TTM) | 1.01% | ||
| GM | 19.04% |
OM growth 3Y14.65%
OM growth 5Y34.25%
PM growth 3Y-52.86%
PM growth 5Y16.72%
GM growth 3Y3.32%
GM growth 5Y7.87%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AIR is destroying value.
AIR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for AIR has been increased compared to 5 years ago.
Compared to 1 year ago, AIR has an improved debt to assets ratio.
2.2 Solvency
AIR has an Altman-Z score of 3.34. This indicates that AIR is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.34, AIR is in line with its industry, outperforming 47.89% of the companies in the same industry.
A Debt/Equity ratio of 0.82 indicates that AIR is somewhat dependend on debt financing.
AIR has a Debt to Equity ratio of 0.82. This is in the lower half of the industry: AIR underperforms 70.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.34 |
ROIC/WACC0.89
WACC9.93%
2.3 Liquidity
AIR has a Current Ratio of 2.91. This indicates that AIR is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.91, AIR is in the better half of the industry, outperforming 61.97% of the companies in the same industry.
A Quick Ratio of 1.31 indicates that AIR should not have too much problems paying its short term obligations.
AIR has a Quick ratio (1.31) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.83% over the past year.
The Earnings Per Share has been growing by 12.75% on average over the past years. This is quite good.
AIR shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.59%.
AIR shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.06% yearly.
EPS 1Y (TTM)21.83%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%27.06%
Revenue 1Y (TTM)17.59%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%11.77%
3.2 Future
Based on estimates for the next years, AIR will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.89% on average per year.
Based on estimates for the next years, AIR will show a small growth in Revenue. The Revenue will grow by 1.07% on average per year.
EPS Next Y15.97%
EPS Next 2Y16.76%
EPS Next 3Y15.89%
EPS Next 5YN/A
Revenue Next Year14.2%
Revenue Next 2Y11.66%
Revenue Next 3Y9.32%
Revenue Next 5Y1.07%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.02 indicates a rather expensive valuation of AIR.
Based on the Price/Earnings ratio, AIR is valued cheaply inside the industry as 91.55% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of AIR to the average of the S&P500 Index (26.49), we can say AIR is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 15.55, the valuation of AIR can be described as correct.
91.55% of the companies in the same industry are more expensive than AIR, based on the Price/Forward Earnings ratio.
AIR is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.02 | ||
| Fwd PE | 15.55 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of AIR indicates a rather cheap valuation: AIR is cheaper than 92.96% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 13.13 |
4.3 Compensation for Growth
AIR's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of AIR may justify a higher PE ratio.
A more expensive valuation may be justified as AIR's earnings are expected to grow with 15.89% in the coming years.
PEG (NY)1.25
PEG (5Y)1.57
EPS Next 2Y16.76%
EPS Next 3Y15.89%
5. Dividend
5.1 Amount
AIR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
82.7
-1.09 (-1.3%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners96.95%
Inst Owner Change7.13%
Ins Owners2.08%
Ins Owner Change-1.95%
Market Cap3.27B
Revenue(TTM)2.86B
Net Income(TTM)28.90M
Analysts82
Price Target90.09 (8.94%)
Short Float %2.8%
Short Ratio2.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.36%
Min EPS beat(2)8.56%
Max EPS beat(2)14.17%
EPS beat(4)4
Avg EPS beat(4)7.56%
Min EPS beat(4)1.68%
Max EPS beat(4)14.17%
EPS beat(8)8
Avg EPS beat(8)4.59%
EPS beat(12)12
Avg EPS beat(12)4.86%
EPS beat(16)15
Avg EPS beat(16)4.6%
Revenue beat(2)2
Avg Revenue beat(2)6.85%
Min Revenue beat(2)6.33%
Max Revenue beat(2)7.38%
Revenue beat(4)3
Avg Revenue beat(4)3.4%
Min Revenue beat(4)-3.93%
Max Revenue beat(4)7.38%
Revenue beat(8)4
Avg Revenue beat(8)1.16%
Revenue beat(12)8
Avg Revenue beat(12)2.16%
Revenue beat(16)10
Avg Revenue beat(16)1.63%
PT rev (1m)1.44%
PT rev (3m)5.58%
EPS NQ rev (1m)-1.31%
EPS NQ rev (3m)-1.49%
EPS NY rev (1m)0%
EPS NY rev (3m)0.4%
Revenue NQ rev (1m)2.32%
Revenue NQ rev (3m)6.38%
Revenue NY rev (1m)3.29%
Revenue NY rev (3m)7.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.02 | ||
| Fwd PE | 15.55 | ||
| P/S | 1.14 | ||
| P/FCF | N/A | ||
| P/OCF | 333.84 | ||
| P/B | 2.62 | ||
| P/tB | 6.81 | ||
| EV/EBITDA | 13.13 |
EPS(TTM)4.13
EY4.99%
EPS(NY)5.32
Fwd EY6.43%
FCF(TTM)-0.65
FCFYN/A
OCF(TTM)0.25
OCFY0.3%
SpS72.25
BVpS31.58
TBVpS12.14
PEG (NY)1.25
PEG (5Y)1.57
Graham Number54.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.99% | ||
| ROE | 2.31% | ||
| ROCE | 11.13% | ||
| ROIC | 8.79% | ||
| ROICexc | 9.1% | ||
| ROICexgc | 13.64% | ||
| OM | 9.31% | ||
| PM (TTM) | 1.01% | ||
| GM | 19.04% | ||
| FCFM | N/A |
ROA(3y)2.32%
ROA(5y)2.84%
ROE(3y)4.33%
ROE(5y)4.83%
ROIC(3y)7.36%
ROIC(5y)6.95%
ROICexc(3y)7.68%
ROICexc(5y)7.26%
ROICexgc(3y)10.94%
ROICexgc(5y)9.53%
ROCE(3y)9.32%
ROCE(5y)8.8%
ROICexgc growth 3Y18.86%
ROICexgc growth 5Y36.52%
ROICexc growth 3Y7.16%
ROICexc growth 5Y28.07%
OM growth 3Y14.65%
OM growth 5Y34.25%
PM growth 3Y-52.86%
PM growth 5Y16.72%
GM growth 3Y3.32%
GM growth 5Y7.87%
F-Score6
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.82 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 3.18 | ||
| Cap/Depr | 64.78% | ||
| Cap/Sales | 1.24% | ||
| Interest Coverage | 3.6 | ||
| Cash Conversion | 3.05% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.91 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z | 3.34 |
F-Score6
WACC9.93%
ROIC/WACC0.89
Cap/Depr(3y)80.23%
Cap/Depr(5y)64.82%
Cap/Sales(3y)1.34%
Cap/Sales(5y)1.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.83%
EPS 3Y17.57%
EPS 5Y12.75%
EPS Q2Q%27.06%
EPS Next Y15.97%
EPS Next 2Y16.76%
EPS Next 3Y15.89%
EPS Next 5YN/A
Revenue 1Y (TTM)17.59%
Revenue growth 3Y15.17%
Revenue growth 5Y6.06%
Sales Q2Q%11.77%
Revenue Next Year14.2%
Revenue Next 2Y11.66%
Revenue Next 3Y9.32%
Revenue Next 5Y1.07%
EBIT growth 1Y75.48%
EBIT growth 3Y32.05%
EBIT growth 5Y42.38%
EBIT Next Year44.66%
EBIT Next 3Y21.14%
EBIT Next 5YN/A
FCF growth 1Y24.63%
FCF growth 3Y-71.08%
FCF growth 5YN/A
OCF growth 1Y545.46%
OCF growth 3Y-21.7%
OCF growth 5YN/A
AAR CORP / AIR FAQ
What is the ChartMill fundamental rating of AAR CORP (AIR) stock?
ChartMill assigns a fundamental rating of 5 / 10 to AIR.
Can you provide the valuation status for AAR CORP?
ChartMill assigns a valuation rating of 5 / 10 to AAR CORP (AIR). This can be considered as Fairly Valued.
Can you provide the profitability details for AAR CORP?
AAR CORP (AIR) has a profitability rating of 6 / 10.
What are the PE and PB ratios of AAR CORP (AIR) stock?
The Price/Earnings (PE) ratio for AAR CORP (AIR) is 20.02 and the Price/Book (PB) ratio is 2.62.
What is the financial health of AAR CORP (AIR) stock?
The financial health rating of AAR CORP (AIR) is 4 / 10.